Microeconomics Final
Which of the following statements is true about the effects of illegal immigration in the united states
Illegal immigration has a negative fiscal impact that falls most heavily on state and local governments
From the perspective of the taxpaer
Tax credits are more valuable than tax deductions because, dollar for dollar, they lower the tax paid by a greater amount
A progressive tax is such that
Tax rates are higher the greater ones income
The US devotes about how much percent of its domestic output to healthcare
17%
The "taste for discrimination model has been shown to be economically:
A bad practice because it results in reduced revenue from not selling to certain groups
Other things being equal, how would the market for personal computers be affected by a large increase in productivity in the computer manufacturing industry
A decrease in price and a rightward movement along the demand curve
Suppose you have to go to a doctor but your health insurance plan does not reimburse you because you have not yet paid enough out of pocket for the year to qualify for insurance benefits. This is an example of
A deductible
The basic economic argument for greater income equality is that
A more equal distribution of a given amount of income has a greater marginal benefit for the poor than the marginal cost for the rich
Based on what we have learned about income and the demand for healthcare we would to conclude that healthcare is
A normal good
Which of the following is a correct description of the relationship between the price of oil and the production of alternative energy sources
As the price of oil rises, the production of alternative energy sources rise
Which of the following statements best illustrates the time-value of money concept
Bob is willing to forgo receiving $100 today in order to receive $110 next month
Joseph Schumpter believed that _______ was a role for an entreprenur
Bringing new products to market, bringing new processes to market, finding new markets
Which of the following is not a social insurance program
Food stamps
Increase in labor demand due to a change in the price of a related resource
Decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers
Two resource inputs, capital and labor, are complementary and always used in the same proportions. An increase in the price of capital will:
Decrease the demand for labor
The demand for capital by a firm is based on the demand for the product that the capital produces. This relationship is referred to as
Derived demand
The marginal tax rate
Equal to the change in taxes/change in taxable income
Each of the following contributes to inequalities of income except
Government transfers of wealth
The problem of asymmetric information is that
Healthcare providers are well informed but buyers are not
The supply curve of loanable funds is upsloping because
Households are willing to save more at high interest rates than they are at low interest rates
The equality-efficiency tradeoff suggests that:
Increasing one of the economic goals can increase the other
Which of the following involves the creation of human capital
Jones receives apprenticeship training as a carpenter
Why did the US become dominated by employer provided health insurance
Offering healthcare insurance as a fringe benefit was a way to attract employees during world war 2
If property rights for forests are clear and enforced, then:
Owners have profit incentives to harvest slowly over time
Which of the following measurement issues make interpretation of U.S. poverty rates difficult?
Poverty statistics measure income rather than consumption, and some families may be able to consume above the official poverty line
The field of economics that analyzes government decision making, politics, and elections is called
Public choice theory
Critics of minimum wage legislation argue that it
Reduces employment
Which resource payment is considered by economists as surplus payment
Rent of land
The pursuit through government of a "transfer of wealth" at someone elses expense refers to
Rent-seeking behavior
Ending discrimination against minority groups in educational processes and in employment would cause total domestic output to
Rise because of an increase in the productivity in the labor force
Which of the following statements is correct
Rising healthcare costs are a major cause of limited access to the healthcare system
Human capital refers to
The accumulated knowledge and skills that allow a person to be productive
The user cost of extracting a non-renewable resource is
The cost of not being able to extract it in the future if it is extracted and sold in the presence
Name 3 factors that would make it more likely for a worker to willingly migrate to another country
The destination country is close to the origin country, the workers age, the workers marital and family situation.
Which of the following is a source of government failure
The enormous size and scope of the government
If the existence of health insurance increases one's incentive to use the healthcare system more intensively, this is an illustration of
The moral hazard problem.
Professional sports leagues like the NFL and NBA are good examples of monopsony because
They are essentially the only employers of professional athletes in their respective sports
What is the net effect of illegal immigration on total employment in the US
Total employment increases, but with some substitution of illegal immigrants for domestic born workers
Increase in labor demand due to a change in the product of demand
Tourism increases in popularity =, increasing the demand for workers at tourist resorts
Present value refers to the
Value today of a specific amount of money to be received in the future
A market failure that would lead a firm to extract resources at a rate that is faster than the rate that would maximize its long term stream of profits
Weak property rights create fears that firms will not be allowed to extract in the future
In the market for loanable funds
an increase in saving will reduce the interest rate
Resource demand has grown over time because of
both increased population and greater consumption per person
If a firm wants to maximize profits it will..
expand employment if marginal revenue product exceeds marginal resource cost
A person will be more likely to migrate the
greater the wages in their prospective new country relative to wages in their home country
Remittances occur when
immigrants send financial payments back to family in their country of origin.
As it relates to the political process, the principal-agent problem results from the
inconsistency between voters interest in programs and politicians interest in reelection
Income mobility
is the movement of individuals and households from one income quintile to another over time.
Illegal immigration positively contributes to the U.S standard of living by reducing:
prices of goods and services produced with illegal immigrant labor
The rent paid for the pasture land used to graze cattle would increase if
the productivity of the land increased, people decided to consume more beef, oil deposits were discovered on the land
Persistent budget deficits and growing public debt can be attributed to
voters wanting government programs but not wanting to pay taxes